Editor’s note: State Rep. John Bel Edwards (D-Amite) sparred verbally with Commissioner of Administration Kristy Nichols and Office of Group Benefits (OGB) CEO Susan West at the Sept. 25 hearing by the House Appropriations Committee on proposed coverage plans for OGB members. Edwards, the minority leader of the House and Chairman of the House Democratic Caucus, is an announced candidate for governor in 2015. He wrote the following piece in an effort to display his frustration over his inability to obtain definitive answers or public documents and records from the administration—and to explain how the administration, as a matter of routine, conceals information from legislators.
By State Rep. John Bel Edwards
At a committee meeting convened last month to address the fiscal “emergency,” at the Office of Group Benefits, Commissioner of Administration Kristy Nichols testified that the premium reductions in 2013 and 2014 that drained OGB’s $500 million fund balance were fiscally sound.
At that hearing, I repeatedly asked if OGB’s actuary – Buck Consultants – had recommended those premium reductions and if they recommended reducing the fund balance. Nichols and an OGB CEO Susan West repeatedly refused to answer. I, along with other legislators at the hearing, asked for copies of Buck Consultants’ recommendations.
Weeks later and I’m still waiting for those reports.
What I do have is an email from Buck Consultants to the OGB CEO that clearly states: “We did not recommend a decrease of 7% effective August 1, 2012, or an additional decrease of 1.77% effective August 1, 2013. Further, we were not asked to provide any recommended rate adjustments for any fiscal years beyond what we provided for Fiscal Year 2012/2013.”
Of course the actuary did not recommend cutting premiums by almost 9 % while health care costs are rising by 6% a year. The consultants knew that would be irresponsible and cause claims payments to greatly exceed premium revenue and drain OGB’s fund balance.
Clearly, the OGB premium reductions that ran the fund balance into the ditch were not actuarially driven. Those premium reductions were driven by the Jindal administration’s desire to spend OGB’s fund balance elsewhere in the budget. When OGB reduced premiums, 75% of the savings went to the state and the Jindal administration was able to spend that money wherever they wanted.
Now that the fund balance is drained and still hemorrhaging at the rate of $16 million a month, the Jindal administration called this self-inflicted wound an “emergency” and proposed raising costs to OGB members – those working and those retired – by $189 million. These higher out-of-pocket expenses will not be shared by the state.
Our state workers, school teachers, support workers, and university staff and faculty and retirees cannot afford this. They do not deserve this. About 25,000 of our retired OGB members are not eligible for Medicare, and many active OGB members bring home as little as $700 per month.
I asked the Attorney General’s Office for an opinion about the legality of Jindal’s effort to unilaterally impose new plans with the exorbitant out of pocket cost increases on workers and retirees. The attorney general’s opinion shows Jindal failed to comply with the Administrative Procedure Act.
This entire debacle has thankfully been slowed down to ensure public notice, public input and legislative oversight as legally required. It is critically important that the administration act in good faith and genuinely consider the testimony and the plight of affected OGB members as well as its own culpability in needlessly causing the “emergency.”
The Jindal administration must honestly answer subsequent inquiries from the public and from legislators and seek ways to lessen the impact to OGB members. The administration must ditch the ill-conceived plan changes and start from scratch with a willingness to increase premiums reasonably and share in the costs of restoring the soundness of OGB.
The recently discovered $178.5M surplus provides the means to both shore up the fund balance and reduce the cost increases on OGB members. The illegal cost increase forced on OGB members in August must be refunded without forcing members to formally request or sue for the refund.
The legislature must finally assert itself as an independent and equal branch of government to provide exactly the kind of check and balance on the Jindal administration provided by the Louisiana Constitution and demanded by the people of Louisiana. We now have this opportunity as there will be legislative oversight hearings on both the emergency and ordinary rules. We must rise to the occasion.
Louisiana Voice 
Representative Edwards – Thank you for writing this, particularly the last paragraph. Again, thank you.
Thank you Mr. Edwards. I can guarantee you that the employees of state government will support you in your race for governor. It is funny how Gov. Jindal is all about letting the teacher’s express their opinion about Common Core. I remember when he fired people because they did not agree with his opinion or beliefs. All of a sudden he wants employees of this state to express their opinions or beliefs and to feel free to do so. IMAGINE THAT! Is he changing Civil Service rules?
Oh, but I forgot, he can chose to do so only when it concerns one of his special projects. He wants the nation to believe he is really looking out for the good of the people of this state making him a good presidential candidate. He is simply the man in charge that makes the decisions he wants to without following the law until someone like yourself points it out to him and his administration. Lets face it. He can come on as an attractive candidate. He is and speaks very intelligently. He speaks very fast, so much so, that you think his brain just cannot spill out all of the knowledge he has on a particular subject. But, his actions speak for themselves. He does not impress me a bit. I can see how his popularity has dwindled. Of course, I am sure he has people in his administration that will give you better survey results than mine.
Maybe we will get his attention. Lord knows, he is the only one who can pull a rabbit out of the hat at this point. Just wonder…..
Thanks again, for all that you have done and will continue to do. I am casting my vote for you. I will help you anyway that I can. This is one of the “perks of being a retired state employee. I can now express my views politically and like Jindal, I don’t care who agrees or doesn’t agree. I refuse to be intimidated by anyone.
Never trust a fast talker.
Well, that would include all auctioneers , so that’s probably pretty good advice. Sorry, just couldn’t resist that one!!!!
Thank you so much, Rep. Edwards. You have been supportive of State retirees and employees from the very beginning in this terribly unfair situation, and we appreciate your support more than you will ever know. You also have the utmost respect of not only me but my family and peers for having the courage to stand up for your beliefs. Jindal has not only been a bully from day one, but his arrogance, his deceit, his manipulations, his dishonesty, and his game playing, directed at just about ALL citizens of the State but most particularly at State employees and retirees, are all disgusting. Many “outsiders,” citizens who do not work for the State, think he’s done a great job, but “insiders,” people who actually work IN these State agencies, KNOW the damage he has done, and those who aren’t highly paid Jindal flunkies not only know but are willing to admit that all these contracts he’s given out in his efforts to “PRIVATIZE TO SAVE MONEY” were nothing but a big joke. So, no, Jindal supporters, when he ravaged these State agencies, he didn’t save the taxpayers money in the majority of these cases – HE COST YOU MORE MONEY AND HE FOOLED YOU INTO THINKING HE DID!! Shame on him for all the havoc he has wreaked in our lives and in this State!
Amen to that. When the “people” realize how much he truly cost them they will be astonished. There are no savings to people. Only more dollars they have to spend in “fees.” Wait in line at motor vehicles. State workers help people. Jindal doesn’t. And the fools that believed him voted for his tomfoolery. Well, the joke’s on them. They put their trust in Gilligan. Good Lord.
Imagine how much better politics could be if we elected more men and women like John Bel Edwards.
Thank you Mr. Edwards, that was beautifully written. I also appreciate your participation in these online discussions.
Today, I attended an OGB meeting for state employees and retirees in Houma, Louisiana. Apparently, the meeting for retirees with Medicare as primary insurer and OGB as supplement is tomorrow, but when I went to talk to two very
professional and polite employees of OGB and told them I was there today and that I could not return tomorrow, they assured me that someone would talk with me and answer my questions. Apparently, the state did not terminate all the good people.
I was not alone, because 7 or 8 other people joined me when retirees on Medicare were invited out into the hall with one of the OGB employees to inform us of changes and answer our questions.
In previous years, if employees and retirees were satisfied with their present coverage, they were advised to do nothing, and they would remain in their present plan. This year, retirees were notified as followed:
“This year you are required to make a selection during the annual enrollment period. If you have Medicare as primary coverage, have OGB secondary coverage and do not make a selection by the end of the enrollment period, you will still retain your Medicare coverage but will be moved into the Pelican HRA 1000 as your secondary coverage – a new low premium plan that offers nationwide network and state funding that offsets out-of-pocket costs.”
See what the rascals did there? Low premiums mean the retiree pays less, but also that the state pays less. For the smaller premium, the retiree receives less coverage, especially for medical care outside the network, when the co-pay percentage increases. Elderly people who had become accustomed to the
years-long practices of OGB may not have understood that this year they MUST choose. Am I paranoid to think that the Jindal maladministration hoped that a good many elderly employees would do just that so they could be automatically be placed in the low premium plan Pelican HRA 1000?
Anyway, I presume as a result of the fiery exchanges at the legislative committee meeting, the instructions have changed. The powers-that-be at OGB have now reverted to the old way of “do nothing if you are satisfied with you present coverage” for retirees.
I was better off attending the wrong meeting because we were a small group, and we all had a chance to speak and have our questions answered satisfactorily by a knowledgeable and professional state employee.
Premiums have not risen, thus retirees and the state do not pay more in premiums, but deductibles have, and retirees alone pay the higher deductibles.
Sorry for the long comment, but I thought the information might be useful for others.
Thank you Sen. Edwards for having the courage to take a stand for the active & retired state employees. Your efforts will not be forgotton !
Thanks, Rep. Edwards for everything you have done already for public school teachers, state employees & retirees & your continuing efforts. Please keep fighting the hard fight, & know that your efforts will not be forgotten.
On the bright side, the extreme adversity suffered by the rank & file folks of LA these past 6+ years, has slowly given rise to a considerable grass-roots network of citizens that is becoming bigger, stronger & better-organized every day – thanks to the efforts of bloggers like Tom Aswell & many others.
Let’s make real history in Louisiana & show the world a Louisiana Governor who wins using positive people power – as opposed to one who wins by selling his soul to the dark money to win at any cost.
Good will & social networking go a long way!
Thank you Representative John Bel Edwards!!! Your article is right on the money and you will be getting my vote for governor! I wish the election was this November so we would not have to endure another year of Booby and Kristy Kreme! Thank you for being so vigilant! The taxpayers of Louisiana appreciate your efforts!
Thank you Mr. Edwards. You have put out there what is very obvious. The surplus should be court ordered as the first installment of payment back to the reserve funds, monies that were wrongly drawn down.
Are you going to place this piece in other media sources??? And what is the next step to forcing the release of the reports you requested??? This response needs to be widely published, so the pressure to hold this administrative accountable for manipulating a spend down of the OGB reserve funds to cover state budget shortfalls can continue to grow.
Please don’t stop pursuing the truth! With the Buck Consultants info, a law suit or even a legal investigation cannot be far away.
Rep. Bell thank you for this post. It amazes me what this administration gets away with and I am outraged that this type of deception is allowed. There are so many lies being broadcast as fact and the entire weight of the debacle created by this administration is being shoved onto our shoulders. Those who know the truth are afraid to stand up for fear of retribution because no matter what the outcome of this mess, we still depend on these very people who continue to stab us in the back, to feed our families. So thank you for standing up for us. Thank you for your support. We are grateful and we support you.
Thank you Mr. Edwards for your participation in the committee meeting and the questions that you asked to expose the lies that Kristy Kreme and her minions were telling everyone. I was in the audience and thought you did an excellent job. Both legislators from my district were there, but only one spoke and asked questions and represented his constituency. I’ll remember him in the voting booth, just as I will remember you for what you’ve done for us retirees and vote for you for Governor. I recommend for those who are interested in expressing your views, write a letter to the editor of your newspaper. Anything printed will get people’s attention. Also, whatever happened to the days when agency heads appeared before a committee and information was requested by a committee member, that info was usually sent to whomever asked for it by the close of the meeting? During my career, I accompanied my boss to committee hearings for the sole purpose of taking notes and if a request was made contact someone in the office to bring the materials to the Capitol. The legislators expected a lot more out of us back then, than those of today!
Many thanks, Rep. Edwards. If Kristy’s found money is real, it should go into the reserve fund for OGB.
I add my thanks, Mr. Edwards, to those of my peers. After working for 30 years for our state, I’m newly retired. It’s a sad thing that Jindal’s shenanigans with cost of living raises these past 6 years or so have taken such a deep bite into our pensions. It’s even worse that we face increased insurance expense with reduced benefits at a time in our lives we should be set to relax and enjoy the fruits of our labor. Jindal is an evil man. He is responsible for the destruction of our state resources and holdings, aided by minions who are content to lie, slander and cheat in hopes of riding his coat tails to Washington, DC — as if Jindal’s pie in the sky dream of residing in the White House could ever come to pass. I would dearly love to see this imbecile prosecuted for his derelict performance, general deceit, misappropriation of funds and various and sundry other criminal behaviors with every cent of reparations drawn from his personal coffers. When he and his wife begin to ail from the stress of dealing with the same crap he’s heaped on us for almost 2 administrations, just pat him on the head with one hand and stab him in the back with the other, all the while telling him it’s gonna be OTAY ’cause he can take advantage of that good ole Pelican 100 insurance!
Thanks sooooo much Mr. Edwards!!!! You are the voice in a much needed fight for our health insurance and so much more!!! I’m with you all the way to the Governor’s Mansion in 2015!!!! Thanks for all you do!!!!
When state workers look around their work environment, we cannot see any leaders. We have folks who espouse Jindal’s philosophy of take all you can and step on or squash the person who is actually doing the job. If any state worker would dare misrepresent facts to his/her boss, including outside of their agency, we would not only be fired, but dragged out of the building in handcuffs. Someone or a whole lot of somebodies need to be fired over this mess at OGB!
Next time there is a legislative hearing, the committee should insist that members of the Administration take an oath before testifying that what they are about to say is true and failure to do so will result in termination.
State workers are counting on some help! Seems like we need our own PAC to get our needs addressed. Thank you Mr. Aswell and Representative Edwards for shining light for those of us who truly do not have a voice.
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Perfect synopsis, Rep. Edwards. Just be thankful you’re an elected official. Otherwise, Jindal would have flushed you on the spot. Again, perfect synopsis of what happened. Jindal wanted $4 million for a racetrack in New Orleans. He tried to take it from the disabled community. Now, I guess OGB folk can look at it as though $4 million of their reserves went to fund the racetrack. I doubt that makes anyone feel any better about the situation, but it’s reality. You wrote one sentence that is CRITICALLY important, so I’m going to repeat it for emphasis: “These higher out-of-pocket expenses will not be shared by the state.”
Thank you John Bel Edwards for looking out for state workers. As a retired state worker, I certainly appreciate your efforts. You can definitely count on my vote for Governor. I just hope you and the legislators can stop this nonsense from being passed.